Inflation is a huge issue in the economy right now. You’ve probably noticed how things in stores are becoming more and more expensive. Everyday purchases like groceries have skyrocketed in price. That’s because your fiat currencies (dollars etc) are becoming less and less valuable over time. This is terrible news for savers, and also terrible news for people struggling to pay their bills.
Hyperinflation can often be a result of quantitative easing. When more money is needed by central banks, it can simply be printed. This devalues the value of the currency that’s already in circulation.
It wasn’t possible in the past, when fiat currencies were backed by a gold standard. For every dollar in circulation, the same amount of gold was kept in reserve to back the price. This gold standard helped prevent inflation and helped ensure a solid asset-backed value for all currency. But a few decades ago, the gold standard was eradicated (sold off) and currencies became de-pegged. This raised a lot of money for central banks, but also meant that currencies were no longer asset-backed. Meaning it could be printed easily whenever necessary, and leading to massive inflation.
This inflationary issue has been solved by one crypto recently with a ton of potential. That’s GLO.
How GLO is the best deflationary token
Unlike fiat these days, GLO actually has a fully 1:1 backed base price. A true store of value, and a gold standard that actually includes digital versions of real-world gold. It also includes a range of other assets, including art, crypto, stablecoins, NFTs and more. The vault of assets isn’t over-reliant on any one asset, but it also has a strong price base that people can have faith in.
GLO also uses advanced burn mechanisms to continue to decrease supply over time. GLO becomes more scarce, unlike fiat currencies which become less and less scarce. This makes GLO the perfect deflationary solution, and one the wider currency world really needs right now. It’s the best deflationary protocol the industry has seen, and it sets up GLO for a ton of future success.
What about Binance Coin (BNB) and Filecoin (FIL)?
Both these cryptos still have a ton of potential in the space, but they don’t solve the world’s inflation problems like GLO does. BNB is becoming an integral part of the crypto trading arena and offers users lots of passive income options on an easy-to-use interface. It’s got a lot of upside, especially compared to mainstream investment options.
Filecoin has created an incredibly secure decentralized storage system for the digital world. It’s fast becoming the best place to keep your assets, and also has an innovative marketplace for trading.
Both BNB and FIL are highly recommended for your portfolio, but they aren’t as deflationary as GLO.